FinQuizcom 2020 All rights reserved 8Reference CFA Level I Volume 1 Study

Finquizcom 2020 all rights reserved 8reference cfa

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FinQuiz.com © 2020 - All rights reserved. A.Standard VI-B ‘Priority of Transactions’. B.Standard II-A ‘Material Non-public Information’. C.Standard V-A ‘Diligence and Reasonable Basis’. Correct Answer: B Reference: CFA Level I, Volume 1, Study Session 1, Reading 3, LOS-b. An opinion of his friend without actual knowledge does not make the information material. Chambers violated Standard V-A ‘Diligence and Reasonable Basis’ because he purchased the stocks of Navarro without appropriate research and investigation. Chambers also violated Standard VI-B ‘Priority of Transactions’ by purchasing stocks for his father’s account only and treating the account differently from his other clients’ accounts. 8 Reference: CFA Level I, Volume 1, Study Session 1, Reading 3, LOS-b. According to Standard III-D ‘Performance Presentation’ if the performance information presented by the member or candidate is brief, the member of candidate must make available to client and prospects on request the detailed information supporting the communication. Best practice dictates that the brief presentation include a reference to the limited nature of the information provided. 10. Mathew Chambers manages individual accounts, including his father’s, at Harvey Securities. During a Sunday lunch at a restaurant with his friend Neil Rojas, Chambers noticed the directors of Navarro Motors sitting at the adjacent table. Rojas stated, “I believe Navarro has hired a new CEO as the firm is undertaking many positive amendments in its production process”. On Monday Chambers noticed a $1 increase in Navarro’s share price and purchased 500 shares for his father’s account. Chambers least likely violated:
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Level I of CFA ® Program Mock Exam 1 – Solutions (AM) 9 11. Blanco Shell Investments (BSI) is a small family owned investment bank and its shares are relatively illiquid. In a casual meeting Brett Palmer, managing director at BSI, told his friend, Leon Fox, that BSI is going to earn substantial profits in its commodities business. In the next few days Fox purchases BSI shares while Palmer disposes his position in BSI and switches his job. Two months later BSI announces huge losses in its commodities business and the share price decreases by $2. Palmer has violated the CFA Institute Standards of Professional Conduct concerning
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